In a recent conversation with DH, Shachindra Nath, Founder & MD of UGRO Capital, shed light on the challenges and opportunities in MSME financing. The MSME sector has faced several setbacks in the past decade, from demonetisation to COVID-19, yet it remains a crucial contributor to India’s GDP.
Nath emphasized that while the government has announced some initiatives to support MSMEs in the recent Union Budget, financing remains a major obstacle for small businesses. He highlighted the need for a focused approach towards boosting the MSME sector, which plays a vital role in job creation and economic growth.
UGRO Capital’s unique lending process, which focuses on cash flow rather than traditional documentation, has resulted in strong asset quality with low NPAs. Nath also stressed the importance of differentiating between NBFCs focused on consumer lending and those supporting MSMEs, advocating for tailored regulatory measures.
With a strong emphasis on technology and data analytics, UGRO Capital aims to address the evolving needs of MSMEs and drive economic progress in the sector.
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